Stock index inches up; market optimistic

The local stock barometer yesterday ended slightly higher on selective buying of large-cap stocks.

The main-share Philippine Stock Exchange index (PSEi) added 8.58 points or 0.14 percent to close at 6,372.66, tracking mostly upbeat regional markets after the United States reported better-than-expected jobs data for June.

For the week, the PSEi gained a total of 180.82 points or 2.9 percent, mostly on Thursday on news of positive results of early tests on an experimental coronavirus vaccine being developed by pharmaceutical giant Pfizer and biotech firm BioNTech.

“Technicals are extremely positive this time, as we’ve signaled in previous days, with the index just breaking out of its falling wedge [bullish] pattern,” local stock brokerage Papa Securities said.

“Immediate target for a continued rally would be at the index’s recent high of 6,500 to 6,600 as shown in the fibo (Fibonacci) extension in the chart, then secondary resistance at the full fibo extension level at 7,000 to 7,200,” the brokerage said.

On Friday, the mining/oil counter outperformed the index with its 2.21-percent gain.

The holding firm, service and property counters all rose by less than 1 percent.

On the other hand, the financial and industrial coun­ters both declined by less than 1 percent.

Value turnover for the day amounted to P7.38 billion. There was meager net foreign buying of P59.32 million.

Despite the PSEi’s slight gain, market breadth was negative. There were 103 decliners that edged out 92 advancers, while 45 stocks were unchanged.

The PSEi was led higher by Gokongwei-led JG Summit, which surged by 3.07 percent.

Security bank and SM Prime both advanced by over 1 percent, while ICTSI, Jollibee, Ayala Land and Puregold all rose by less than 1 percent.

Outside the PSEi, notable gainers included Manila Water, which climbed by 2.71 percent.

On the other hand, BPI fell by 2.13 percent while Ayala Corp. and GT Capital both lost over 1 percent.

BDO, PLDT, Metrobank, Globe Telecom and Metro Pacific all slipped by less than 1 percent.

Outside the PSEi, notable decliners included newly listed Altus Property, which pulled back by 24 percent after a strong run-up since listing by way on introduction on June 26.

Third telecom player Dito also declined by 11.63 percent. —DORIS DUMLAO-ABADILLA|INQ

Source: Peso Economics